A new study conducted by CyberSmart has found that a significant number of UK SMEs believe they are at a greater risk of cyberattacks due to the cost-of-living crisis. The study surveyed a thousand SME senior leaders across the UK and revealed that 47% of respondents believe their businesses are more vulnerable to cyberattacks since the onset of the crisis.
According to the study, 38% of the respondents believe the increased risk is due to malicious insider threats, where disgruntled employees make decisions that are not in the best interest of the company. Another 35% believe it is due to negligent insider threats, wherein overworked or distracted employees make mistakes that compromise cybersecurity.
The economic uncertainty caused by the cost-of-living crisis has also had a significant impact on employees within these SMEs. The study found that almost one-third of employers (29%) have kept employee salaries stagnant, resulting in a decline in real wages due to inflation. Additionally, 11% of the businesses have reduced salaries, while 24% have paused recruitment and 16% have laid off employees as cost-saving measures.
These financial challenges faced by employees have led to workforce issues within the SMEs. The study reveals that 24% of employers have noticed that their staff feel overwhelmed or concerned about meeting their financial commitments, while 18% feel overworked. Furthermore, 16% of businesses believe that the stress has made their employees less engaged or productive, with 14% observing increased disgruntlement among the workforce. Additionally, 11% have noticed a growing rift between senior leadership and employees.
The impact of these challenges on employees may lead to concerning activities within the workplace, as anticipated by employers. The study found that 22% of employers expect their employees to take on additional jobs during working hours, while another 22% believe employees are more likely to make mistakes such as clicking on phishing links. Additionally, 20% believe employees may steal sensitive data from the company for personal profit or competitive advantage, and 17% believe employees may seek to harm the company’s reputation due to resentment over salary cuts or stagnation. Interestingly, 14% of employers believe employees may use AI tools like ChatGPT to perform their job, and 14% believe there is a risk of employees engaging in financial fraud.
However, the study also highlighted that not all businesses are experiencing a negative company culture during the cost-of-living crisis. In fact, 20% of businesses believe that the crisis has brought their company closer together, and 16% of employees are more motivated to impress senior leaders. Despite this, it is crucial for employers to be mindful of how their staff are coping during such challenging times.
Jamie Akhtar, CEO and Co-Founder of CyberSmart, emphasizes the importance of regular security awareness training and supporting employees with empathy. He warns that just one disgruntled or overworked employee can make a decision that puts the entire business at risk.
The study also took into consideration external factors that contribute to the growing risk of cyberattacks. According to the SME business leaders surveyed, 32% attribute the increased risk to higher rates of supply chain fraud, while 31% express concern about nation-state interference from hostile countries like Russia and China.
Overall, the study conducted by CyberSmart highlights the significant impact of the cost-of-living crisis on SMEs in the UK. The increased risk of cyberattacks, as perceived by these businesses, underscores the need for robust cybersecurity measures, regular employee training, and support from employers during challenging times.